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Russia intends to limit access to the digital currency

October 11, 2017

Russia intends to limit access to the digital currency in the future. Web sites offering crypto-currencies will be blocked in the future, warned the central bank of the country. The announcement triggered a brief crash on the Bitcoin exchange rate. This morning, however, the rate has returned to more than 4,800 USD, while immediately after the announcement by the Russian Central Bank, it temporarily collapsed by more than 600 USD. Such a collapse occurred in September, when China banned the new initial coin offerings and blocked crypto-currency exchanges.

“We believe that for our citizens and businesses the use of such a crypto-currency as an investment object brings unnecessarily increased risks”, said the the Deputy Spokesperson of the Central Bank of Russia, Sergey Shvetsov. “We can not provide retail investors with direct and easy access to such dubious tools”, added he.

The Russian authorities reported last month that they would regulate the usage of crypto-currencies by Russian citizens and companies. Behind the digital currencies are not staying governments and central banks and their price is determined only by demand and supply. Money is generated by users whose computers calculate highly complex algorithms for that purpose.

Bitcoin is also in the spotlight because of allegations of fraud, bankruptcy on exchanges and suspicions of money laundering, as well as terrorism financing.

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About Viliyana Filipova

My name is Viliyana Filipova, 27 years-old woman from Bulgaria. I established the Economics Gazette and employed high educated and experienced team of business, finance and economy analysts, as well as journalists. We will provide you the latest news about economy, business and finance, trying to be objective and fully independent.